Skip to content

Philippine Peso Slides to Record, Boosting Case for Bigger Hikes

  • Currency weakened past previous all-time low set in 2004
  • Peso may fall to 57 by year-end on trade deficit, Natixis says
Updated on

The Philippine peso tumbled to a record low, boosting pressure on the central bank to raise interest rates more aggressively to stem the slide.

The currency on Friday weakened beyond its previous all-time low set in 2004 after surging imports widened the trade deficit to a record high in June. The peso has also come under pressure due to the increasing divergence between the hawkish Federal Reserve and a local central bank that has signaled it may slow the pace of interest-rate hikes.